CariCRIS reaffirms ‘good creditworthiness’ for Colfire

Caribbean Information and Credit Rating Services Ltd (CariCRIS) has reaffirmed the assigned credit ratings of CariA on the regional rating scale and ttA on the national scale to Colonial Fire and General Insurance Company Ltd (Colfire).

CariCRIS, in a release, said these ratings indicate a good level of creditworthiness, adjudged in relation to other obligors in the Caribbean.

Colfire was also assigned a stable outlook on the ratings.

“The stable outlook is based on our expectation that Colfire’s financial performance should gradually improve and return to profitability in the fiscal year 2024. We also expect it will remain adequately capitalised and maintain its strong market position over the next 12-15 months, barring any major systemic events,” it said.

CariCRIS said Colfire continues to reflect a strong market position supported by a robust distribution network.

“The ratings are further supported by Colfire’s continued good asset quality and adequate information systems and risk management policies,” it said.

However, the release added that these ratings are tempered by Colfire’s financial performance in 2022, which was significantly affected by higher claims expense, resulting in a loss after tax, as well as concentrated sovereign risk alongside prevailing economic conditions.

In April, Ansa Merchant Bank Ltd via its subsidiary TT Insurance Ltd (TATIL) acquired 100 per cent of Colfire’s shareholdings for an estimated $320 million.